The decline in local production and consequent importation of cotton against heavy foreign exchange has already become a heavy burden on the textile industry.

 The extraordinary appreciation of the dollar against the rupee over the past five years has increased the cost of production of the industry. This is adversely affecting the consumption of Pakistani textiles in the world market, while the country's exports are heavily dependent on this sector. The governments of the countries with which Pakistan competes have given substantial incentives to the export industries, and this proves to be helpful for the government in economic stability. This media report that due to excessive production cost, more than 100 small and big factories, including the leading textile mills, have been closed in Faisalabad, and more than two hundred thousand people have become unemployed, is a matter of serious concern. 

If the situation continues, there is a fear of closure of more mills in the coming days, whose production has already reduced to 40%.  The Pakistan Hosiery Manufacturers and Exporters Association has warned that if the government fails to bring down the interest rate below 10%, including reducing electricity and gas prices, the production industry will also be closed. The relevant circles say that the conditions are very favorable at the global level to increase Pakistani exports. There is no doubt that the high interest rate and the current energy prices in the industrial sector, it is having a bad effect. The demand of Chambers of Commerce and Industry and exporters to maintain the employment of people, especially to increase exports, is not unreasonable. The government should try to take appropriate steps in this regard. The textile sector is of special importance as traditionally most of Pakistan's exports depend on this sector. Apart from this, this sector is also the largest source of employment in the country, which not only employs millions of workers, but business activities in many other sectors involved in the textile value chain also depend on the development of the textile industry. However, the sector is already facing difficulties due to the increase in electricity and gas prices to meet the financial targets of the IMF programme. 

So many textile mills have already partially closed and where there is some work. Even there the conditions are not favorable.  Moreover, industrialization is already in decline due to mounting external debt, decline in large-scale manufacturing and other problems. In such a situation, it is important to pay special attention to the textile industry to increase exports. This will not only reduce the economic problems of Pakistan but will also increase the supply of employment in the country. Providing export incentives by encouraging investment in the textile sector and improving market access for Pakistani exporters will help increase export volume and reduce the trade deficit. The exporters associated with the textile industry have already termed the 2023 the worst year for their sector. According to them, the volume decreased by 14.5% compared to 2022, investors suffered huge losses and thousands of workers were laid off. This trend started in January and till June, the rate of decrease in exports was 13-29% per month. In the first 6 months of the financial year 2023-24, the overall ratio of decline in exports has risen to 6.5%. The instability in the value of the dollar, rising prices of electricity and gas, global recession and non-payment of refunds are the major reasons for this decline.  In the light of the past situation, the textile sector has prepared a policy roadmap for the next elected government, in which the target of increasing the exports of this industry to 50 billion dollars by 2029 has been set. Competitive trade bilateral contracts market ( (CTBCM) and the metering limit for industrial users will be increased from one MW to five. 

The role of the textile industry in the national economy has always been key, which is not only the backbone of exports but also the domestic economy. It is also very active in meeting the needs. Due to weak government policies, the agricultural sector is gradually declining and the low production of cotton is causing the need of raw materials for the textile industry to be met through imports. In the light of this scenario, this is a homework for the Ministry of Planning, Industry and Commerce and other government and private institutions related to the economic sector and the Chamber of Commerce and Industry. It is time in the light of which the recommendations and suggestions prepared will provide guidance to the incoming elected government. The current government will have totake immediate steps  for the restoration of the industry, because if the wheel of the industry runs, people will get employment.  If the industry does not survive, people's jobs will also be lost. The rulers need to understand the basic point of the economic system that the increase in foreign exchange reserves is possible only by increasing exports.  Due to the rising cost of doing business and increase in power prices to the industries, this vital sector is in doldrums. For this, the textile sector really needs to be given protection. Our first priority should be to restore the balance of trade. The balance of our trade is not in our favor at the moment, due to which we are forced to take new loans to pay the old debts and also to pay the interest on them.  In this regard, we need to study the Bangladesh model, how they have made their country economically stable by consistently implementing the export-oriented growth policy.  The textile industry is working at barely 50% production capacity, which is expected to reduce the textile exports of one billion dollars on the monthly basis. The share of textiles in Pakistan's exports, which has been greater than that of all other industries combined, has been reduced to less than half as local cotton production has steadily declined over the past several years.  It may be recalled here that way back, in the late nineties, its cultivated area was 32 lakh acres. which is now 22 lakh acres.  More unfortunately, the 2022 floods destroyed a large part of the crop, while its imports were affected due to the recession in the global market which cost a real damage.

One report says that our textile exports have fallen further by 15% to $16.5 billion due to higher energy prices. In two years, 25-30% of the mills have closed, killing more than 700,000 jobs. Due to the closure of small mills and manufacturing units, the export of bed sheets, towels and other textile products has been affected.